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The Taiwanese company plans to produce 2nm chips in mass quantities this year. The high costs are intended to ensure that only companies capable of affording the advanced technology will be potential buyers. While the first batch of products is typically used by Apple, NVIDIA and AMD may also seek access to these top-of-the-shelf items.
According to a report from Korean press, TSMC’s 2nm yields hover around 60%, making it confident enough to enter mass production. In contrast, Samsung, its only competitor in high-end contract chip manufacturing, faces lower yields of about 40%. To attract customers away from TSMC, Samsung is offering more competitive pricing and faster delivery.
Another report from Taiwanese media reveals that TSMC’s Arizona fab achieved a profit of NT$4.2 billion during the second quarter, marking its second consecutive profitable quarter and contributing to its parent company’s profits for the first time. Prior to this, the fab had made NT$496 million in the first quarter after starting 4-nanometer volume production in Q4 2024.
This profitability is driven by steady high-value orders from clients such as Apple, NVIDIA, and AMD. The growing demand in the US suggests that domestic needs are beginning to outweigh increased manufacturing costs at TSMC’s American site.
However, analysts caution that future depreciation costs could reduce the profitability of TSMC’s US factories. The Japanese site has already reported losses for the first half of the year, and TSMC aims to expand its US operations by adding two new factories.
